Quiz Valuation Bonds Problem: a/ What is the value of a $1000 par value bond with 10 years to maturity and with a coupon rate of 8%, semi-annual payments, when using a 7.5% interest rate? b/ The price of the bond would be $1,027.66 if the yield is increased by 10 basis points from 7.5% to 7.6%. The price of the bond would be $1,041.87 if the yield is decreased by 10 basis points from 7.5% to 74% Calculate the duration of the bond. hasis wint decrease in vield